Evolution Mining (ASX: EVN) agreed to acquire Carnaby Resources (ASX: CNB) in an all-stock deal valued at about A$213 million ($149 million) that would give the Australian gold producer a pipeline of high-grade copper-gold ore for its Ernest Henry mine while adding what analysts say is a large, underexplored land package.

Shareholders of Carnaby will receive 0.0682 new Evolution share for each Carnaby share held, according to separate press releases dated Monday. This implies an offer price of 77.2¢ for each Carnaby share, representing a 61% premium to Friday’s closing price.

Acquiring Carnaby would give Evolution control over the Greater Duchess copper-gold project, which would become a second ore source for the acquirer’s processing infrastructure. This could boost Evolution’s annual copper production by about 10,000 tonnes by utilizing spare mill capacity and existing infrastructure at nearby Ernest Henry, reducing development risk and capital intensity compared with a standalone operation.

The deal “is expected to provide additional growth opportunities at Ernest Henry,” BMO Capital Markets mining analyst Brian Quast said in a note.

Greater Duchess’s proximity to Ernest Henry “provides an opportunity to increase copper production at Ernest Henry, utilising latent mill capacity and existing infrastructure,” Evolution CEO Lawrie Conway said in a release. “Combining Carnaby’s Greater Duchess and prospective tenement package, together with Evolution’s established operating presence in North West Queensland, provides regional consolidation and has the potential to unlock value for both Carnaby and Evolution shareholders.”